Senator John J. Flanagan (2nd Senate District) recently announced that legislation he sponsored to extend tax relief for alternative-energy homeowners has passed both the Senate and the Assembly. The legislation, which now is awaiting Governor David Paterson’s signature, will extend local tax exemptions for environmentally-friendly homeowners who install energy-efficient systems on their homes.
Due to the fact that a new energy system is technically an improvement to a home, the value of that home increases and is accompanied by an equivalent increase in property taxes. However under current state law, school districts and local governments have the ability to provide a tax exemption for properties containing wind, solar and farm waste energy systems so that those who install new environmentally-friendly energy system are protected from any new tax liability due to their new system.
With this exemption set to expire at the beginning of 2011, Senator Flanagan sponsored the legislation to extend the time period so that those who construct their energy efficient systems by January 1, 2015 are protected and to encourage other homeowners to take advantage of this important tax benefit.
“This four-year extension will hopefully encourage more homeowners across our state to use alternative fuels to protect our environment. Our state should be providing those who are making the conscious choice to be more environmentally friendly with worthwhile incentives so that we can continue moving away from our reliance on fossil fuels,” stated Senator Flanagan. “I am hopeful that Governor Paterson will sign this extension into law so that everyone who wants to can take advantage of this exemption.”